This week there was a large move in a stock that people had been wondering about, lots of people were giving up on the business because it was failing to deliver revenue growth. But this week all 4 or 5 insiders bought large cash positions in the stock. now that was something to discuss. People putting up cash, rather than being gifted stock or options, that is a great indicator they think the problems in the business are temporary and are buying in large positions.
I agree with that. I love to see insider buying as I think it’s one of the best signals out there as to what management thinks about the long-term prospects of the business. In this case the Board members bought over $4M over the last few days, which is close to 1% of the market cap. This is on top of the $4M they bought during the last 6 months or so. The company operates in an environment that currently is not doing as well, but this will recover and with it, the company will do well.